The Korea Chemical Industry Association welcomed the government's announcement on the approval of the second petrochemical industry restructuring project, which involves Lotte Chemical, DL Chemical, and Hanwha Solutions at the Yeosu Industrial Complex.
This approval marks the second restructuring in the domestic petrochemical sector, following the first project at the Daesan Industrial Complex in February, and is the first approval for the Yeosu Industrial Complex.
The association stated, "With the approval of the Yeosu restructuring following the Daesan project, we believe it will help alleviate the domestic petrochemical supply surplus and restore industrial competitiveness."
It added that relevant ministries and agencies, including the Ministry of Trade, Industry and Energy, the Ministry of Economy and Finance, the Fair Trade Commission, and the Financial Services Commission, collaborated during the approval process to establish support measures in finance, taxation, and research and development.
The association anticipates that the restructuring will lead to a reduction and relocation of production facilities within the Yeosu Industrial Complex, enhancing production efficiency and cost competitiveness.
Participating companies are also expected to focus on transitioning their business structures toward high-value and eco-friendly products while securing future growth engines.
Um Chan-wang, the executive vice president of the Korea Chemical Industry Association, remarked, "With the approval of the Yeosu Industrial Complex restructuring following the Daesan project, the restructuring of the domestic petrochemical industry has begun in earnest."
He emphasized, "To overcome the structural crisis in the petrochemical industry, effective policy support from the government must continue alongside companies' self-reform efforts. Support is needed to help the petrochemical industry regain its competitiveness as a national strategic industry amid external uncertainties such as the Middle East conflict."
The association plans to continue collaborating with the government, the National Assembly, and the industrial sector to complete the restructuring of the petrochemical industry.
Meanwhile, the government has reviewed the proposals submitted by the Yeosu project companies and prepared a tailored support package focusing on finance and taxation, cost reduction and system rationalization, regional economic stability and employment, and technology development.
* This article has been translated by AI.
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